Glossary

Glossary

A

Adjusted EPS from E&C
Non-IFRS financial measure defined by the Company as net income attributable to SNC-Lavalin shareholders from E&C, excluding charges related to restructuring and right-sizing, as well as amortization of intangible assets, and the acquisition and integration costs incurred in connection with the acquisition of Kentz in 2014, per SNC-Lavalin common share.

Adjusted EPS from ICI
Non-IFRS financial measure defined by the Company as net income attributable to SNC-Lavalin shareholders from ICI, excluding charges related to restructuring and right-sizing, as well as net gain (loss) on disposals of ICI, per SNC-Lavalin common share.

Adjusted net income from E&C
Non-IFRS financial measure defined by the Company as net income attributable to SNC-Lavalin shareholders from E&C, excluding charges related to restructuring and right-sizing, as well as amortization of intangible assets, and the acquisition and integration costs incurred in connection with the acquisition of Kentz in 2014.

Adjusted net income from ICI
Non-IFRS financial measure defined by the Company as net income attributable to SNC-Lavalin shareholders from ICI, excluding charges related to restructuring and right-sizing, as well as gain (loss) on disposals of ICI.

AECL
Atomic Energy of Canada Limited.

B

Backlog
See Revenue Backlog.

Bbpd
Billion barrels per day.

Booking-to-revenue ratio
Ratio obtained by dividing the contract bookings by the revenues, for a given period.

Bpd
Barrels per day.

Brownfield projects
Projects in which the infrastructure is already built and operational.

Bscfd
Billion standard cubic feet per day.

Btpy
Billion tonnes per year.

C

CAGR
Compound Annual growth rate.

Cash net of recourse debt
Cash and cash equivalents less cash and cash equivalents from ICI and recourse debt.

CCS
Carbon dioxide capture and sequestration.

CND
Canadian.

Company
SNC-Lavalin Group Inc. and all or some of its subsidiaries or joint arrangements, or SNC-Lavalin Group Inc. or one or more of its subsidiaries or joint arrangements.

Cost Reimbursable with a Fixed-Fee Contract
Contract in virtue of which the Company charges the client its actual costs as they are incurred, plus a fixed fee amount over the term of the agreement.

Cost-Plus Reimbursable Contract
Contract in virtue of which the Company charges the client its actual costs as they are incurred plus a profit margin.

D

DND
Department of National Defence.

E

E&C
Engineering & construction.

EBIT
Earnings before interest and taxes. Non-IFRS financial measure defined by the Company as the earnings before net financial expenses and income taxes.

EBITDA
Earnings before interest, taxes, depreciation and amortization. Non-IFRS financial measure defined by the Company as the earnings before net financial expenses, income taxes, depreciation and amortization.

EIA
Environmental impact assessment.

Engineering & construction
Refers to the activities reported within the Services, Packages and O&M categories of activity.

EPS from E&C
Non-IFRS financial measure defined by the Company as net income attributable to SNC-Lavalin shareholders from E&C per SNC-Lavalin common share.

F

FDA
Food and Drug Administration (US).

FEED
Front end engineering and design.

Fixed-Price Contract
Contract in virtue of which the amount to be charged by the Company is fixed, regardless of the actual costs to be incurred by the Company. Also referred to as lump sum contracts.

Freehold Cash
Non-IFRS financial measure defined by the Company as its cash and cash equivalents, excluding cash and cash equivalents from fully and proportionately consolidated ICI, not committed for its operations, investments in ICI and balance of payment for past business acquisitions.

G

GAAP
Generally accepted accounting principles.

GES+
General engineering services plus (includes project management).

GHG
Greenhouse gas.

Greenfield projects
Projects in which the infrastructure needs to be built, as there is none on the site.

H

H&S
Health and safety

HPP
Hydrocarbon processing plant.

HQE
High quality environmental standards.

I

I&C
Infrastructure and construction

ICI
Infrastructure Concession Investments.

IFRS
International financial reporting standards.

Infrastructure Concession Investments
The Company’s equity investments in infrastructure concessions such as airports, bridges, cultural and public service buildings, highways, mass transit systems, power and water treatment facilities.

IR
Investor relations.

J

JV
Joint venture.

K

No terms for this letter

L

LEED
Leadership in Energy and Environmental Design.

LNG
Liquefied natural gas.

LRT
Light rapid transit.

Lumpsum Contracts
Contract in virtue of which the amount to be charged by the Company is fixed, regardless of the actual costs to be incurred by the Company. Also referred to as fixed-price contracts.

M

Mtpy
Million tonnes per year.

MUHC
McGill University Health Center.

MW
Megawatt.

N

Net Cash Position
Cash and cash equivalents less cash and cash equivalents from ICI and recourse debt.

O

O&G
Oil and gas

O&M
Operations and maintenance.

Operations and maintenance
Category of activity that includes contracts under which the company provides Operations and Maintenance in the following lines of businesses: i) project, facility, and property management, ii) industrial, iii) transportation, and iv) defence and remote camp logistics.

P

P3
Public-private partnership

Packages
Category of activity that includes contracts wherein SNC-Lavalin is responsible not only for providing one or more Services activities, but also undertakes the responsibility for providing materials and providing or fabricating equipment and usually also includes construction activities. As such, Packages revenues include the cost of materials, equipment and/or construction.

PPP
Public-private partnership.

Q

No terms for this letter

R

Return on Equity
Corresponds to the TTM net income attributable to SNC-Lavalin shareholders, divided by a trailing 13-month average equity attributable to SNC-Lavalin shareholders, excluding "other components of equity".

Revenue Backlog
Forward-looking indicator of anticipated revenues to be recognized by the Company, determined based on contract awards that are considered firm. O&M activities are provided under contracts that can cover a period of up to 40 years. In order to provide an information that is comparable to the revenue backlog of other categories of activity, the Company limits the O&M revenue backlog to the earlier of: i) the contract term; and ii) the next five years.

ROASE
Return on Average Shareholders’ Equity, corresponding to the Company's TTM net income attributable to SNC-Lavalin shareholders, divided by a trailing 13-month average equity attributable to SNC-Lavalin shareholders, excluding "other components of equity".

S

SAGD
Steam assisted gravity drainage.

Scfd
Standard cubic feet per day.

Segment or sub-segment EBIT
Non-IFRS financial measure defined as gross margin less i) directly related selling, general and administrative expenses; ii) corporate selling, general and administrative expenses; and iii) non-controlling interests before taxes. Corporate selling, general and administrative expenses are allocated based on the gross margin of each of these segments. Restructuring costs, goodwill impairment, acquisition-related costs and integration costs, as well as amortization of intangible assets are not allocated to the Company’s segments.

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About SNC

Founded in 1911, SNC-Lavalin is a global fully integrated professional services and project management company and a major player in the ownership of infrastructure. From offices around the world, SNC-Lavalin's employees are proud to build what matters. Our teams provide comprehensive end-to-end project solutions – including capital investment, consulting, design, engineering, construction management, sustaining capital and operations and maintenance – to clients across oil and gas, mining and metallurgy, infrastructure, clean power, nuclear and EDPM (engineering design and project management). On July 3, 2017, SNC-Lavalin acquired Atkins, one of the world’s most respected design, engineering and project management consultancies, which has been integrated into our sectors.